Published on 3/30/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.13 million contingent income buffered autocalls on stocks
By Sarah Lizee
Olympia, Wash., March 30 – BofA Finance LLC priced $1.13 million of contingent income buffered autocallable securities due March 23, 2023 linked to the lesser performing of the common stocks of Alphabet Inc., Netflix, Inc., Costco Wholesale Corp., Walt Disney Co. and Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
Each month, the notes will pay a contingent coupon at the rate of 21.5% per year if each underlier closes at or above its coupon barrier, 70% of its initial level, on the determination date for that period.
Starting in September, the notes will be automatically called at par if each underlier closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless either underlier finishes below its 70% buffer level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines beyond 30%.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income buffered autocallable securities
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| Underliers: | Alphabet Inc., Netflix, Inc., Costco Wholesale Corp., Walt Disney Co. and Apple Inc.
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| Amount: | $1,126,000
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| Maturity: | March 23, 2023
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| Coupon: | 21.5% per year, payable monthly if each underlier closes at or above coupon barrier level on determination date
|
| Price: | Par
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| Payout at maturity: | Par unless either underlier finishes below buffer level, in which case 1% loss for every 1% that lesser-performing underlier declines beyond buffer
|
| Call: | Starting in September, automatically at par if each underlier closes at or above initial level on any quarterly determination date
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| Initial levels: | $1,068.21 for Alphabet, $332.83 for Netflix, $290.42 for Costco, $85.98 for Walt Disney and $229.24 for Apple
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| Coupon barriers: | $747.75 for Alphabet, $232.98 for Netflix, $203.29 for Costco, $60.19 for Walt Disney and $160.47 for Apple; 70% of initial levels
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| Buffer levels: | $747.75 for Alphabet, $232.98 for Netflix, $203.29 for Costco, $60.19 for Walt Disney and $160.47 for Apple; 70% of initial levels
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| Pricing date: | March 20
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| Settlement date: | March 25
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| Agent: | BofA Securities, Inc.
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| Fees: | 3.5%
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| Cusip: | 09709TD65
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